Joint Venture to Develop Sindirgi and Tavsan
(Thomson Reuters ONE) - 27th October 2009AIM / PLUS Markets: AAU JOINT VENTURE TO DEVELOP SINDIRGI AND TAVSANAriana Resources plc ("Ariana" or "the Company"), the goldexploration and development company focused on Turkey is pleased toannounce a Memorandum of Understanding ("MoU") on a joint venture("JV") agreement designed to advance the Company significantlytowards its goal of becoming a long term gold producer.Highlights * Good-will payment of US$0.5 million on signature of MoU * 50-50 JV to develop the Sindirgi and Tavsan projects * US$8 million funding to be committed to feasibility and plant constructionDetails of MoUShareholders will recall that in the Company's half-yearly reportreleased on 29 September 2009, Dr Kerim Sener, Managing Director,explained that the Company was examining the feasibility of combiningits two principal projects, Sindirgi and Tavsan, into a singleconceptual entity - the Red Rabbit Project - and that it wasconsidering the development of this project as a joint venture with aTurkish engineering firm.The Company now announces that, through its operating subsidiaryGalata Madencilik San. ve Tic. Ltd., it has entered into a MoU withProccea Construction Co. ("Proccea"), an integrated Turkish turn-keyconstruction firm involved in a range of business sectors from goldprocessing plants to major hotels. The MoU provides for thenegotiation of formal joint venture documentation which is expectedto lead to the establishment of a long term gold mining operation inTurkey.The JV agreement envisaged in the MoU is a 50-50 joint venturebetween Ariana and Proccea to be formalised by the establishment of aTurkish joint stock company which will hold and develop the assets.Proccea will then be committed to fully-fund an Environmental ImpactAssessment and Feasibility Study on Red Rabbit and to commenceconstruction of the gold processing plant. By funding US$8 million,Proccea will earn-in to its 50% share in the joint stock company. Itis intended that the additional capital requirements for plantstart-up may be met by a credit facility to be arranged by thejoint-stock company. On the successful commissioning of the plant,profit share within the joint stock company will be 51% Ariana and49% Proccea.Under the terms of the MoU, Ariana will be paid within seven workingdays US$0.5 million in cash which will be used at the Company'sdiscretion in exchange of a letter of guarantee valid for a term ofone year. However, should the parties to the MoU fail to reachagreement on the signing of the formal joint venture documentation,the Company will be obliged to return this cash sum in full with thereturn of the letter of guarantee.The implementation of the joint venture agreement is contingent uponthe outcome of approximately 90 days' due diligence, with a long stopdate for completion of the formal joint venture documentation of 180days.Dr. Kerim Sener, Managing Director, commented:"The completion of this MoU with Proccea marks a major step forwardfor Ariana. Our earlier trial mining at Kiziltepe demonstrated ourability to produce gold in Turkey, providing the technical andeconomic reassurance necessary to develop the Sindirgi and Tavsanprojects as a successful integrated entity - the Red Rabbit project.We have identified a strong JV partner for funding the projectthrough the feasibility and construction stages, with a track recordof successful gold project development in Turkey. Their experiencein establishing many successful gold plants worldwide reflects theirhigh level engineering and operating skills and we are proud to enterthis partnership with them."Mr. Deniz Aybars, Managing Director, Proccea, commented:"We are very pleased to enter this partnership with Galata Madencilik(the subsidiary of Ariana Resources plc in Turkey) and excited aboutdeveloping a Turkish gold mining venture. We look forward tocompleting the JV agreement in the coming months and the start offruitful long term relations."About ProcceaProccea Construction Co. (www.proccea.com) is an integratedconstruction firm specialising in turn-key solutions for a variety ofbusiness sectors ranging from the development of gold processingplants to designing and building major hotels. The mining service isprovided by a business division of Proccea named CH Engineering &Consultancy ("CH"). CH provides a range of services to the miningindustry, including the design of mining equipment and processingplants, manufacturing installation, commissioning, start-up and stafftraining for gold and silver extraction in the mining industry(www.chconsultants.com).CH provides the installation and technical services for such goldmining processes as heap leach, CIL and CIP design and operations.CH has wide experience of designing and commissioning gold and silverprocessing plants. In Turkey this has included the Kisladag gold mine(Eldorado Gold), Copler gold mine (Anatolia Minerals), Mastra goldmine (Koza Gold) and the Gümüsköy silver mine (Eti Gümüs).Internationally, CH processing plant commissions have included theZarcan gold mine in Iran, the Knelson gold mine in Kazakhstan, theAmesmessa gold mine in Algeria, the Kitila gold mine in Finland, theMinera Triton gold mine in Argentina and the Maaden gold mine inSaudi Arabia. CH has the technical support of the internationallyrenowned Summit Valley Equipment and Engineering firm based in Utah,U.S.A.Contacts:Ariana Resources plcMichael Spriggs, Chairman Tel: 020 7407 3616Kerim Sener, Managing DirectorBeaumont Cornish Limited Tel: 020 7628 3396Roland CornishAlexander David Securities Limited Tel: 020 7448 9820Nick Bealer / David ScottLoeb Aron & Company Ltd Tel: 020 7628 1128Peter Freeman / Frank LucasEditors' note:About Ariana ResourcesAriana is an exploration and development company focused onepithermal gold-silver and porphyry copper-gold deposits in Turkey.The Company is exploring a portfolio of prospective licences selectedon the basis of its in-house geological and remote-sensing database,on its own in western Turkey and in Joint Venture with EuropeanGoldfields Limited in north-eastern Turkey.The Company's flagship assets are its Sindirgi and Tavsan goldprojects. Both projects contain a series of prospects, within twoprolific mineralised districts in the Western Anatolian Volcanic andExtensional (WAVE) Province in western Turkey. This Province hoststhe largest operating gold mines in Turkey and remains highlyprospective for new porphyry and epithermal deposits. These coreprojects, which are separated by a distance of 75km, are presentlybeing assessed as to their economic merits. The total resourceinventory of the Company stands at 401,000 ounces of goldequivalent.Loeb Aron & Company Ltd. and Alexander David Securities Limited arejoint brokers to the Company and Beaumont Cornish Limited is theCompany's Nominated Adviser.For further information on Ariana you are invited to visit theCompany's website at www.arianaresources.com.Ends---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.10.2009 - 08:01 Uhr
Sprache: Deutsch
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